Buy Rivian Stock

last updated on

Buy Rivian Stock

Rivian (RIVN) Stock: Why It Is A Buy Before 2031

This year has been tough for the Rivian (RIVN) stock. The stock price is trading way below its ATH and is also negative on a YTD basis.

But, analysts think the future of Rivian is bright if we look in terms of years and not months. One key catalyst that can send the Rivian stock to new highs is the launch of robotaxis. According to analysts, the robotaxis will take off by 2031.

Robotaxis Will Be Mainstream By 2030

If we look at Tesla, it has been struggling with declining auto sales for a few years now. However, the company is still not trying its best to fix the sales issue. Instead, it is going to spend most of its $20 billion budget for capital expenditure into new opportunities.

One particular area where Tesla is putting a lot of money is robotaxis. And that's the area where Rivian is also expected to compete heavily and is likely to capture a big portion of the market.

But will the trend of robotaxis become a reality? According to a survey from McKisney & Co., it will become a big thing by 2030.

Many people think Tesla will dominate this market, but they forget about Rivian. The reality is that Rivian also has the potential to compete heavily in the robotaxi market.

Rivian has recently made a new disclosure, where it revealed it will not be EBITDA positive by 2027. The reason for this is increased spending on R&D associated with the autonomy roadmap. In simple words, Rivian is spending heavily on robotaxis and self-driving vehicles.

Also, Uber Technologies has made a $1.25 billion worth of orders. This will get it up to 50,000 Rivian cars and will then be used by Uber to power its own robotaxi fleet.

All of this tells us that robotaxis will become a big thing by 2030, and Rivian stock is a good option to capitalize on it.

Trending Stories